Government announces subsidised fuel scheme for motorcycles and rickshaws following price hike

ISLAMABAD: The federal government has decided to introduce a subsidised fuel scheme aimed at providing relief to owners of motorcycles and rickshaws in the wake of the recent increase in petrol prices, according to an official statement.

The Ministry of Energy (Petroleum Division) announced on Tuesday that the scheme is being developed to cushion the impact of the latest fuel price hike on low-income groups who primarily use motorcycles and rickshaws for daily transportation. The ministry stated, "The government is fully cognisant of the difficulties faced by the common man due to the increase in petroleum prices and is working on a targeted subsidy scheme for motorcycles and rickshaws."

According to the statement, the Petroleum Division is currently working out the modalities of the scheme, which will be presented to the Economic Coordination Committee (ECC) for approval. The ministry added that the plan is to provide targeted relief to those most affected by the price hike, with further details to be shared once the scheme is finalised.

The announcement comes after the government raised petrol prices by Rs4.53 per litre, bringing the new price to Rs293.94 per litre. The price of high-speed diesel was also increased by Rs8.14 per litre, setting the new rate at Rs290.38 per litre. The price adjustments were made in line with international market trends, as stated by the Ministry of Finance.

The Ministry of Energy highlighted that motorcycles and rickshaws constitute a significant portion of daily transport for the working class and low-income segments. The ministry said the proposed subsidy aims to ensure that these groups are not disproportionately burdened by rising fuel costs.

Officials also noted that the government is exploring various mechanisms to ensure that the subsidy reaches the intended beneficiaries and is not misused. The Ministry of Energy said that further details, including eligibility criteria and the method of disbursement, will be announced after approval from the ECC.

The government has previously implemented similar targeted relief measures in response to fuel price fluctuations, and officials said the current initiative is part of ongoing efforts to support vulnerable populations amid economic challenges.